Advisers Bet Japan Stocks Will Keep Rising

Slower earnings growth still looks relatively attractive

Investors in Japan stock funds are betting last year's strong run will continue, but the recent selloff is warning advisers to expect more turbulence and less certainty in the world's third-biggest economy.

"As corporate earnings come down to earth, so should expectations for Japanese equities," says Toru Ibayashi, head of research in Japan for UBS AG's wealth-management group.